Financing Constraints And Cracking Of Innovation Traps

China’s economic development has changed into high-quality development.High-quality innovation is an important driving force for economic growth.In terms of the number of innovation,China’s PTC international patent applications have led the world for three consecutive years,but the global innovation index reflecting the quality of innovation ranks only 12 th in the world,and there is still a large gap between the proportion of invention patent applications and international innovation powers.Therefore,there is an innovation trap of“emphasizing quantity and neglecting quality” that only pays attention to the amount of innovation and not the quality of innovation.Enterprises are the main part of innovation activities.On the one hand,high-quality innovation needs a lot of financial support,and financing constraints will affect the choice of enterprise innovation activities.On the other hand,China’s enterprise credit evaluation mechanism is becoming more and more perfect,and enterprise credit level will affect financing constraints and the quantity and quality of enterprise innovation.Therefore,solving the enterprise innovation trap from the perspective of financing constraints and enterprise credit level is one of the major topics of China’s economic and social development.In this context,based on signalling theory,information asymmetry theory and principal-agent theory,this paper constructs panel data from 9912 observations of 2201 listed companies in Shanghai and Shenzhen Stock Exchange from 2009 to 2020,and studies the crack of corporate financing constraints on innovation trap,The financing constraints are subdivided into debt financing constraints and equity financing constraints,and the impact of financing constraints generated by different financing channels on the quantity and quality of enterprise innovation is further discussed.In addition,the enterprise credit level is introduced to explore its regulatory effect,and the heterogeneity of the samples is analyzed from the perspective of the nature of property rights.It is found that:(1)The financing constraints faced by enterprises and the subdivided debt financing constraints and equity financing constraints have an adverse impact on the quantity and quality of enterprise innovation,and both have a stronger adverse effect on high-quality innovation activities represented by invention patents than low-quality innovation activities.There will be a “quantity over quality” innovation trap.(2)Higher enterprise credit level can mitigate the adverse impact of financing constraints and subdivided debt financing constraints on the quantity and quality of enterprise innovation,but can not mitigate the adverse impact of equity financing constraints on innovation.(3)The adverse effect of financing constraints on the quantity and quality of innovation is more noticeable in state-owned firms and non-state-owned firms respectively;Debt financing constraints and equity financing constraints have a noticeable impact on the innovation of non-state-owned firms and state-owned firms.(4)In non-state-owned enterprises,higher credit level can mitigate the inhibition of enterprise financing constraints and subdivided debt financing constraints on enterprise innovation activities,but not in state-owned enterprises.Credit level can not mitigate the adverse impact of equity financing constraints on innovation in any enterprise with property rights.Therefore,this paper believes that to solve the innovation trap of enterprises,we can optimize the financing environment of high-quality innovation,guide high-quality innovation by policies,improve the credit evaluation system and give full play to the leading role of state-owned enterprises.